Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,496 per unit and then sells them to retail customers for an average price of $2,100 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	932 per month
Sales salaries and commissions	$	4,814 per month, plus 4% of sales
Delivery of pianos to customers	$	60 per piano sold
Utilities	$	661 per month
Depreciation of sales facilities	$	4,959 per month
Administrative:
Executive salaries	$	13,505 per month
Insurance	$	703 per month
Clerical	$	2,501 per month, plus $37 per piano sold
Depreciation of office equipment	$	851 per month

During August, Marwicks Pianos, Inc., sold and delivered 63 pianos.

Required:

1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: 0 Total selling expenses Administrative expenses. 0 Total selling expenses Administrative expenses Total administrative expenses 0 Total selling and administrative expenses 0 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses 0 0 Total variable expenses Contribution margin Fixed expenses Total variable expenses 0 0 Contribution margin Fixed expenses Total fixed expenses 0